- Ripple’s XRP is under pressure, losing ground even as other coins recover.
- The price oscillates at a critical level created by the daily EMA200.
Ripple’s XRP is crazy in the cryptocurrency industry. The digital asset has lost nearly half of its value in less than a week amid panic over the SEC’s lawsuit against the San Francisco-based fintech startup.
At the time of writing, XR is changing hands at $ 0.29, down more than 6% overnight. The asset has slipped to fourth place in the global cryptocurrency market rating with a current market cap of $ 13.2 billion and an average daily trading volume of $ 9.5 billion.
Cryptocurrency Exchanges Continue To Remove XRP From The List
As FXStreet previously reported, several cryptocurrency exchanges have written off or suspended XRP trading, citing concerns about Ripple’s legal issues. If the court decides that XRP is a security, trading platforms can be accused of making it available to retail investors.
Bistamp is the latest exchange that introduced limitations on XRP trading. Customers based in the United States will not be allowed to trade or deposit XRP from January 2021, the company announced on Twitter.
In light of the recent SEC filing alleging that XRP is a security, we will be halting XRP trading and deposits for all US customers on January 8, 2021. Other countries are not affected. Learn more: https://t.co/RUGtkAjr08
– Bitstamp (@Bitstamp) December 25, 2020
Bistamp’s move halted the upward correction in XRP and took the price below $ 0.30.
XRP is bearish as it stays below $ 0.45
From a technical point of view, XRP has moved into the daily EMA200. This critical hurdle has been limiting the selling of XRP since June 2020. If broken, the sell could gain ground with the next focus on the old channel support at $ 0.21. The price touched this area on December 23 but managed to recover amid strong profit taking activity.
XRP, daily chart
Meanwhile, on the upside, the local recovery is being created by a psychological $ 0.30. However, a sustained move above $ 0.32 is needed to ease the initial bearish pressure and allow a rally towards $ 0.035 (daily EMA100) and $ 0.45. The latter is created by the broken channel support and the daily EMA50. A move above this barrier will invalidate the bearish scenario and align XRP with the recovery in the cryptocurrency market.